Uzbekistan to expand deep processing of natural gas

Uzbekistan intends to expand deep processing of natural gas to produce high value-added products, rather than limiting its use to fuel for electricity generation. President Shavkat Mirziyoyev announced this on October 16 at an open dialogue with investors in the fuel and energy sector, stressing the economic value created by processing.

A synthetic liquid fuel complex in Kashkadarya region currently produces up to 1.5 million tonnes of fuel and other products annually. In Bukhara region, a methanol-to-olefins (MTO) project is planned to produce polyethylene, polypropylene and polyethylene terephthalate (PET). The Bukhara and Fergana oil refineries are also set to be modernised.

Authorities expect investors to propose projects based on modern technologies that meet environmental requirements and are economically justified. Competition, transparency, economic efficiency and mutual benefit will be the key selection criteria. Meanwhile, geological exploration work is under way with Azerbaijan's SOCAR and the UK's BP on six investment blocks in Ustyurt. A further 128 blocks are being prepared for foreign partners, with forecast resources estimated at 5.8 trillion cubic metres of gas and 560 million tonnes of liquid hydrocarbons.